Business Can Support LGBTQ Nonprofits This June – June is Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ) Pride Month, a month to honor the 1969 Stonewall Uprising in New York City. This pivotal event was the catalyst for the gay rights movement, not only in the United States but around the globe.
If you’re like many brands and businesses today, perhaps you’d like to show your support for the LGBTQ community this Pride Month by engaging in fundraising efforts for a local LGBTQ+ nonprofit.
Aside from showing solidarity with the community and aligning yourself with a nonprofit you believe in—which should be the primary reason for your initiative—charitable giving may have some additional benefits. And if keeping track of those philanthropic contributions or donated goods and services seems a bit daunting, accounting software can make it easy.
Beyond the rainbow. How to support LGBTQ+ charities during Pride Month and throughout the year
If it’s Pride Month, you’ll see rainbows, the symbol of lesbian, gay, bisexual, and transgender pride. Rainbow flags, also Rainbow t-shirts. Rainbow coffee cups, and also Rainbow everything. And as long as the rainbow usage is authentic and used to express solidarity and not just for sales, i.e., rainbow washing, it’s all good…but it’s only a start. Unfortunately, discrimination and lack of acceptance for the LGBTQ+ community are still issues. Let’s look at some other ideas for supporting the LGBTQ+ community during Pride Month and throughout the year.
Make cash donations or in-kind contributions
Cash donations and in-kind contributions to an LGBTQ+ charity are meaningful ways to support the gay and trans communities. Money donations are always welcome, as are contributions of goods and services, such as:
- Office equipment and supplies
- Legal, tax, or marketing advice
- Web design
- Printing
- Administrative support
- Items for fundraising, such as raffle prizes or silent auction donations
- Meeting space
Sponsor an event
Sponsor a local Pride parade, 5K, concert, or other Pride Month celebration and connect your business to an event that brings together thousands. Your business name and logo may be featured on everything from banners to programs to be noticed by participants, attendees, local businesses, and fellow supporters and allies. Encourage your team members to attend or volunteer.
Host an event
Raise awareness for inclusion and recognize Pride Month by hosting an event for the public or your employees. Depending on your type of business, you could book a speaker or hold a lunch & learn session on the history of LGBTQ+ rights.
Fundraise
Businesses frequently partner with nonprofits to raise money by offering a certain percentage of proceeds to the charity. For example, if you’re a retailer, you could donate 10% of your profits from all sales made during a June weekend to an LGBTQ+ nonprofit. If you own a restaurant, selling a special Pride Month menu item could benefit an LGBTQ+ rights organization.
Recording Donations and Charitable Contributions using Accounting Software
Donations to 501(c)(3) nonprofit organizations may be claimed as a charitable contribution for tax purposes. The receiving organization must acknowledge in-kind donations, and a form or written document with the cost or the donation’s fair market value must be included. Consult your accountant if you’re unsure about a donation’s fair market value or whether a donation should be recorded in your books as an in-kind donation.
Here are some tips on how to leverage small business accounting software to record monetary and in-kind donations.
Cash donations
- Set up the receiving charitable organization as a vendor. Record donations as a check or a bill and payment, just as you would for any other payment to a vendor.
- The expense account should be a dedicated expense account for tax-deductible contributions. This will make tax time a little easier.
In-kind donations of products or services
- Create an invoice for your donated products or services.
- Create an account for charitable contributions.
- Create a “Charitable Contributions” product/service item.
- Issue a credit memo for the value of your donated products or services. The memo should reflect the amount of your donation.
Reach out to your accountant if the amount you’re writing off as a contribution will significantly affect your gross sales amount.
Why giving back is good for your business and the community
Donating to an LGBTQ+ charity helps the organization and is a meaningful way to align your business with your core values. But these philanthropic initiatives can have other benefits, too.
Improves company morale
Supporting a cause can engage and motivate your team as you work together for a common goal. It can boost morale and create a positive, inclusive work environment and culture.
Enhances customer retention and attracts new customers
Consumers are more likely to spend money with businesses that back causes they believe in. It shows you are invested in social responsibility and do more than pay lip service to the issues affecting the LGBTQ+ community.
May increase tax deductions
Donations, including gifts of cash, property, and equipment, to 501(c) (3) organizations may qualify for tax deductions. A non-cash charitable deduction of $500 or more requires IRS Form 8283. Some accounting software programs can track potential tax deductions for you, but it’s a good idea to speak with your tax advisor to learn more about claiming donations and charitable contributions.
Builds community relationships
When you give to local organizations, you build partnerships that can have a long-lasting social and economic impact. It establishes your business as an integral and upstanding part of the community.
Think of ways your team, products, services, or skill sets could business can support LGBTQ nonprofits this june Month and throughout the year. It’s a win-win for the LGBTQ+ community and your business.
